Marcia, Marcia, Marcia

Who remembers the TV show where that line originated?  Of course, it's easy for those of us of a "certain age".  Who can forget the wholesome, yet weird world that was "The Brady Bunch"?

In what is now considered a legendary episode, Jan Brady was frustrated that her sister Marcia had won all of the awards and the teachers all held Jan to Marcia's high standards.  In frustration, she angrily warbled the famous triple lamentation…Marcia, Marcia, Marcia. 

The line came to me as I was reviewing CHR's blog history recently and noticed an awful lot of "cloud" within our blog headlines. 

Cloud, Cloud, Cloud. 

Or, try it in a Jerry Seinfeld voice…"What IS it with all this cloud stuff?"

Frankly, it took me a while to catch up to my CHR colleagues who have been busy implementing our cloud service offering.  While I understood some of what they told me, I was having trouble reconciling their geek-speak into language I understand. Specifically, where's the money?

Money, Money, Money

I am happy to report that I have now found the money.  This is what it looks like. 

In the past, telcos have been required to invest big, audacious sums to upgrade their networks to provide the next big thing.   Digital switching, DSL, Fiber Transport, Video, FTTH.  Other than video, the big investments were largely paid for with regulatory support mechanisms.  As the threat of decreasing support revenues looms large in telco planning, leveraging the current enabling network becomes critical. As for video, well, let's just say the returns aren't all in yet. 

As the network upgrades to enable broadband continued, and as killer apps were sought, tried and either adopted or discarded, the fact that most require significant and additional capital increased the risks.  When the business case for "cloud" services is examined, it too can require significant additional investment in equipment, training, (yet more) software to make it work, marketing and, finally, the need to cobble all of these pieces into a coherent service offering customers will actually need or want. In fact, the fixed investment for offering a simple suite of cloud-based services is quite high. More money and more risk.

All of the past investments were required because of "place" - the equipment HAS to be near the customer.  Even video head-ends require "place" near the customer due to the transport bandwidth requirements. Cloud is different. Cloud can be anywhere.

Virtually all past enabling investments inherently lack scalability due to the "place" requirement.  Loops dedicated to one customer are inherently (and increasingly) inefficient for voice but are scalable when something of value is added to the wire to the customer. Cloud has the ability to help fill the loop.

Modern electronics are usually provisioned with vast capacities (NOT capabilities) rural carriers may never use. Assuming the gift of language, I imagine the components of a soft-switch saying to each other about their workday "C'mon, is that all ya got? Bring me MORE.  Feed me." I believe the hardware required for cloud services would join the "feed me" chorus.

CHR has undertaken the operational and financial risk to create a Cloud offering, a scalable service suite that removes virtually all of the deployment and financial risk inherent in the delivery of Cloud services. Software and hardware are in place, contracts with underlying service providers are signed, marketing strategies and materials are developed.  For a very low upfront cost and the willingness to undertake a revenue-sharing partnership, CHR is providing a cost effective, low risk method to begin to offer cloud-based services to rural telco customers.

I am excited to tell you about this offering. It answers a lot of questions.  It will add to top line revenues and, in a remarkably short period of time and little risk, it will add to your bottom line as well.  Check it out.

Win, Win, Win.  Customers, Telcos, CHR

In the accompanying post, we will provide a rundown of the services we offer.

Written by Kevin Kutcher at 10:00

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